NORTECH SYSTEMS INC (NSYS) Form 10-Q — Aug 12, 2026

$NSYSForm 10-QFiled Aug 12, 2026, 4:05 PM ET0001493152-26-037344Original filing

Nortech Systems' Q2 2026 net sales rose 9.3% year over year to $33.5 million, with gross margin expanding 120 basis points to 17.0% on higher volumes and better cost absorption. Net income was $316 thousand, or $0.11 per share, roughly flat with the prior year as higher incentive compensation offset the gross profit gains. For the first half of 2026, revenue grew 10.9% to $63.9 million and the company swung to net income of $282 thousand from a $1.0 million loss a year earlier, with operating income of $670 thousand versus an $871 thousand operating loss. Medical Device sales jumped 36.0% in the quarter and Medical Imaging rose 12.2%, while Industrial and Aerospace & Defense declined.

Key figures

Eps: $0.11 basic and diluted Q2 2026; $0.10 basic / $0.09 diluted H1 2026
Revenue: $33.54M Q2 2026; $63.86M H1 2026
Net Income: $316K Q2 2026; $282K H1 2026 vs. $(1,003)K H1 2025
Total Debt: ~$10.7M (lines of credit $7.87M, term loans $2.07M, finance leases $0.78M)
Debt Amount: $15.0M revolving credit facility plus $2.2M term loan (Associated Bank)
Revenue Yoy: +9.3% Q2; +10.9% H1
Total Assets: $80.05M
Cash Position: $1.38M cash plus $0.29M restricted cash at June 30, 2026
Interest Rate: SOFR + 2.00% revolver / SOFR + 2.25% term loan; weighted-average 7.9% and 7.7% in Q2 2026
Maturity Date: March 2029 (Associated Facility)
Shares Outstanding: 2853766
Backlog 90day: $33.445M (+25.8% YoY, +6.3% QoQ)
Backlog total: $93.849M (+19.8% YoY)
Gross margin h1: 16.3% (+260 bps YoY)
Gross margin q2: 17.0% (+120 bps YoY)
Operating income q2: $623K vs. $742K prior year (-16.0%)
Effective tax rate q2: 26%
Operating cash flow h1: -$2.449M
Customer a concentration: 31% of H1 net sales; 26% of accounts receivable; 37% of contract assets
Unused revolver availability: $3.552M

Price after filing

1 day: +1.6%7 days: -17.7%30 days: -23.6%

Close on the filing date to close N calendar days later (from $14.64). Historical, not a forecast.

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